Excellence in education was honored today in the Senate Chambers as Senators recognized the Hawai‘i Department of Education’s (HIDOE) 2018 Teacher of the Year recipients. The Teacher of the Year award is part of a prestigious national program that honors teaching excellence, and the overall Hawai‘i State Teacher of the Year is chosen from one of the seven HIDOE districts and public charter school winners. This year Vanessa Ching, from Ewa Makai Middle School, is named the 2018 State Teacher of the Year. Ching has taught in the HIDOE for 14 years. Besides teaching, Ching is also the Student Activities Coordinator, Year Book Advisor, and Green Program Coordinator at Ewa Makai Middle School. As a result of her students’ advocacy for a plastic-free Hawai‘i, Ewa Makai is the only school in Hawai‘i to have won the National Green Ribbon School certification. Ching says, “All we need is a belief in ourselves because when we have high expectations of ourselves and know that we can accomplish our goals, others will follow.” The 2018 District Teachers of the Year are Amanda Fretto, Francine Hughes, Gregg Iha, Erika Kaneo, Del Onaga, Cristin Priolo, and Naomi Salaveria. Amanda Fretto teaches at Kamakahelei Middle School on Kaua‘i, and she is a certified special education teacher with a Master’s in Educational Psychology. Fretto is described by a colleague as having the “heart of a lion and compassion to do what she does like no other.” Francine Hughes is from the Maui District, and she is certified in Elementary Education with a Master’s in Educational Leadership. Hughes has 20 years of teaching experience and her shared leadership style successfully promotes collaboration and understanding of DOE initiatives. Gregg Iha is the Central District winner and he initiated the “Six Pillars of Character” program for students and adults in the Mililani Complex. Iha lives by the creed: “Sometimes you lead by force of character, sometimes you lead with love, but always lead with honor and strength of character.” The Hawai‘i District awardee is Erika Kaneo of Waiākeawaena Elementary. Kaneo works with 2nd and 3rd graders and she designs effective, differentiated and individualized instruction. She is described as a teacher “who believes in helping students and teachers at different levels to grow to their full potentials, while approaching problems as opportunities and that combination is a key to success.” Del Onaga is the Windward District winner where he teaches at-risk youth at Olomana School. Onaga is a certified Career and Technical Education teacher in Industrial and Engineering Technology and he is the lead teacher for his school’s Engineering Academy. His teaching style is described as “a combination of quiet support and calm persistence of high expectations that allow his students to thrive.” Cristin Priolo is the Public Charter Schools award recipient. Priolo has a Master’s and Bachelor’s of Science in Elementary Education and Special Education. She centers her teaching on the belief that students become passionate about learning when they are able to connect world issues to their own life experiences. One parent describes her as a “milestone person, someone unforgettable, who impacts you for a lifetime.” Naomi Salaveria of Liholiho Elementary is the Honolulu District Teacher of the Year. Her passion is working with special education students with high needs, and she teaches students with multiple disabilities, including autism and orthopedic handicaps. Salaveria is also a volunteer at Shriner’s Hospital.

Hawai‘i Senators were able to touch, taste, and talk with local business during today’s Manufacturing Day at the State Capitol. Locally based companies were able to showcase their Made-in-Hawai‘i products through exhibits that were free and open to the public. This was also an opportunity for businesses to discuss initiatives to grow Hawai‘i’s economy. Manufacturing Day is hosted by the Chamber of Commerce of Hawai‘i. #hawaiisenate #manufacturingday #jkalanienglish #williamespero #rozbaker #michellekidani #clarencenishihara #glennwakai #alohashoyu #tarochips

WHO: Sen. Lorraine Inouye (Dist. 4 - Hilo, Hāmākua, Kohala, Waimea, Waikoloa, Kona) WHAT: Town Hall Talk Story session WHEN: Sunday, March 25, 2018 5:00 p.m. – 6:30 p.m. WHERE: Prince Kūhiō Kalaniana‘ole Elementary and Intermediate School 27-330 Old Māmalahoa Highway Pāpa‘ikou Residents are invited to talk story and weigh in on key measures that are moving through the Legislature during this Session. This is the second of Sen. Inouye’s Legislative Talk Story sessions for residents of Senate District 4. “This is an opportunity to talk about the very challenging issues and concerns faced by individuals, families, and kupuna, and also by businesses, farmers, and not-for-profit organizations,” said Sen. Inouye. “This is what being a State Senator is all about – having the experience and relationships to work with residents from throughout our very diverse district to problem solve and create opportunities.” Measures of particular interest to the Pāpa‘ikou community include a $1.5 million Capital Improvement Program funding request to build a covered court complete with night lighting and necessary fencing at Kalaniana‘ole School. Also of interest to Kalaniana‘ole School families will be SB2083 to secure funding to introduce Expanded Learning Opportunities, also known as after-school programs, for this Title I school. There will be time for discussion on other community-specific issues including the “Our Care, Our Choice” bill, proposed legislation to create an airport authority, kupuna care, and invasive species eradication efforts. # # # #lorraineinouye #Legislativetalkstory #HawaiiSenateDistrict4 #Kupuna

Members of the Hawai‘i Senate honored Hui O Ho‘ohonua (HOH808) for their work in restoring the land surrounding Pu‘uloa at Pearl Harbor. HOH808 is a non-profit, community development networking organization that is dedicated to restoring this area to ‘āina momona (abundant land) by resurrecting lo‘i (taro), fishponds, and creating sustainable community gardens. Their mission statement is “The Impossible Is Where We Start,” and their hard work and determination is evidenced by restoring Kapapapuhi Point Park’s entire shoreline area, wahi pana (sacred sites), and the three Apokeo fishponds. These sites will be used to educate the community about the cultural importance of the area, and highlights their recent accomplishment with the passing of HCR214 that celebrates “Malama Pu‘uloa Month” through October. Recognized on the floor today were the vital members of this organization, including Tony Chance, Executive Director; Sand Webb, Chair, Board of Directors; Heath Todd, Vice President; Trey Lima, Project Leader; and Carena Phillips, Visual Communications.

Hawai‘i youth who are excelling both in and outside of the classroom were honored today on the Senate floor. This year’s finalists for the Boys and Girls Club of Hawaiʻi’s State Youth of the Year were recognized for their excellence in academics, volunteerism, and student involvement. These outstanding youth are valued members of their respective communities. Mia Dahl is a freshman at the Hawai‘i Academy of Arts and Sciences in Pahoa where She maintains a 4.0 GPA. As the Hawai‘i Island State Youth of the Year, she also volunteers to help other students at her school with homework and with the school’s garden. Mia aspires to be a pediatrician in her community one day. Caylie Peterson is a sophomore at King Kekaulike High School, where she maintains a 3.7 grade point average. As the Maui State Youth of the Year, she has been a Boys and Girls Club member for six years and serves as a role model for the younger members. Caylie is active in her school’s Japanese Club and Drama Club. She created her own business by growing and selling chili peppers, lemons, and limes in her own garden. Caylie also represents the Hāʻiku Clubhouse in the annual Little Chef Big Chef competition. Cornelius Phillips the Oahu State Military Youth of the Year finalist and is a member of the Keystone Torch and Pacific Teen Panel program, and he plays for the Schofield Teen Center basketball team. He is a senior at Mililani High School where he maintains a 3.6 grade point average. Cornelius is a member of the National Honor Society (NHS), volunteers regularly in service activities, and he recently won a scholarship to attend Louisiana Tech University. Hannah Bethard is very involved in the SMART Girls program, an all-female leadership program. She is a sophomore at Radford High School. As an Oahu State Military Youth of the Year finalist, she is a member of both the cooking and art clubs, and she is the Vice Commander for her schoolʻs Junior Reserve Officersʻ Training Corps (JROTC). The top honor of 2018 Youth of the Year was awarded to Shalain Maxin. Shalain is a senior at McKinley High School where she is co-captain in her schoolʻs JROTC and has attained the third highest rank in her batallion in the ROTC program. She is also a member of the Girls Power and Leadership-in-Training programs. Through club activities, she has created opportunities to both empower her peers and give back to the community. # # # #boygirlsclub #corneliusphillips #oahustatemilitaryouth #cayliepeterson #kingkekaulikehighschool #misdahl #hawaiiacademyofartsandsciences #hannahbethard #smartgirlsprogram #shalainmaxin #mckinleyhighschool #HawaiiStateYouthoftheYear #Boysandgirlsclubofhawaii

Senate bills and Council of Revenues’ projections improve the State’s Financial Plan HONOLULU, Hawai‘i - The State Senate has drafted, discussed, and voted on SB508, SB2415, SB2484, SB2489, SB2699, and SB2821 that are projected to generate approximately $72 million in revenues based on the Department of Taxation estimates. The current State Financial Plan shows the State is over spending by $208 million this fiscal year, $263.2 million in FY2020, $209.7 million in FY2021, and $105.4 million in FY2022. The additional revenues derived from the Senate bills will be added to the general fund which will allow the State to pay for government services, debts and liabilities, and to reduce financial shortfalls for the next five years. With the Senate voting on the final measures today, combined with the updated January 8th Council of Revenues forecast, the State revenues to the general fund will increase by $114.7M. Senate Measures SB508 SD1 promotes tax compliance. It has become difficult and costly for the State to collect unpaid taxes from nonresident sellers of Hawai‘i real estate. This measure will allow the State to recover taxes from nonresident sellers by increasing the percentage from 5% to 9% that is withheld on the amount realized by nonresidents from the disposition of Hawai‘i real property. Per the Department of Taxation’s projections, this measures would generate $14.4 million for the State’s general fund for Fiscal Year 2019. SB2415 SD1 raises the conveyance tax rates for residential “investment” properties with a value of at least $2 million. Per the Department of Taxation’s projection, this measure would generate $8.6 million for the State’s general fund for Fiscal Year 2019. SB2484 SD1 provides the State to capture some of the money that certain residents will no longer be required to pay to the Federal government and redirect that money to the State. The additional estate tax revenues could be used to pay for priorities that the Federal government will no longer be able to support due to the significant reduction of estate tax revenues. Per the Department of Taxation’s projection, this measure would generate $900,000 for the State’s general fund for Fiscal Year 2019. SB2489 SD2 The tax formula on time shares has not been updated since its establishment in 1998. This measure updates the formula for the amount of transient accommodations taxes to be collected from time shares and is projected by the Department of Taxation to generate $20.2 million for the State’s general fund for Fiscal Year 2019. SB2699 SD2 Transactions regarding the furnishing of transient accommodations are increasingly conducted over the internet which has resulted in the State not collecting the full amount of transient accommodations taxes. This measure establishes a process for online platforms to pay the transient accommodations tax on accommodations booked through their websites and imposes the transient accommodations tax on resort fees. Per the Department of Taxation’s projection, this measure would generate $19.4 million for the State’s general fund for Fiscal Year 2019. SB2821 SD1 This measure is the annual conformity measure submitted by the Department of Taxation. This measure maintained current State law in numerous key areas. For example, the State's current allowance of individual itemized deductions will be maintained to ensure that individual taxpayers are not burdened with increased income tax obligations. Additionally, per Department of Taxation’s projection, this measure would generate $9.2 million for the State’s general fund for Fiscal Year 2019. Council on Revenues At its meeting on January 8, 2018, the Council on Revenues raised its forecast from 4.3% to 4.5% for Fiscal Year 2018. This 0.2% increase is projected to add an estimated $12 million in tax revenues to the State’s general fund. State Financial Plan Per the Department of Budget and Finance's General Fund Financial Plan, the State overspent by $134 million in Fiscal Year 2017. This year, the Governor's Supplemental Budget request totals $7.4 billion in general funds, of which $3.6 billion is already dedicated to fixed costs. In addition, the State Financial Plan will be short an additional $33 million the first year, and $67 each year thereafter since no revenues are expected from SB2963 SD1. This increases the overspending amount which the legislature will be expected to identify additional revenues or make cuts to cover the additional shortfall. For Fiscal Years 2018 – 2022, the financial plan shows a total of $786.3 million in overspending and it is not until Fiscal Year 2023 that the State will show a surplus. The State continues to tackle it's increasing unfunded liabilities. In the early nineties, the State stopped contributing to the Employees' Retirement System (ERS) and as a result, the State's current portion of the ERS unfunded actuarial accrued liability is $8.94 billion. Similarly, prior to 2014 the State did not pre-fund the Employer-Union Health Benefits Trust Fund (EUTF) and now the EUTF unfunded liability has grown to $9.314 billion. Possible Revenues In addition to efforts to decrease spending, the following measures are estimated to generate $72 – $136.7 million in additional revenue per year for Fiscal Years 2019 – 2024. These measures have passed third reading in the Senate and will be sent to the House for further consideration. These measures are not included in the Financial Plan, due to non-voluntary compliance and unresolved Federal legal issues. However, these issues may be resolved in the near future by U.S. Supreme Court. SB2514 SD1 and SB2890 SD2 Many local brick-and-mortar businesses are at a disadvantage with online merchants. To ensure fair competition among all businesses and fairness, this measure would require any online merchant that sells goods and services to residents of the State to pay the general excise tax. Up to $9 million would be generated for the State’s general fund for Fiscal Year 2019 per the Department of Taxation’s projection. SB2963 SD1 will strengthen country enforcement laws and ordinances relating to vacation rentals. Furthermore, this measure establishes a process for online platforms to collect and remit to the State the transient accommodations tax on vacation rentals. Per the Department of Taxation’s projections, compliance and participation would generate up to $10 million for the State’s general fund for Fiscal Year 2019 and up to $20 million annually for the outyears. Reallocation of the Transient Accommodation Tax While SB2224 SD2 will not affect the State’s Financial Plan, the measure will reallocate transient accommodations tax to departments with a mission that supports our visitor industries and economic development, as follows: $1,000,000 shall be allocated for the operation of a Hawaiian center and the Museum of Hawaiian Music and Dance at the Hawai‘i Convention Center; $16,500,000 to the Department of Business, Economic Development, and Tourism to be expended for economic development initiatives and programs; $3,500,000 to the Department of Education to be used for a grant program for initiatives and programs related to hospitality and tourism industry careers; $7,891,000 to the University of Hawai‘i System for academic programs relating to hospitality and tourism industry career pathways; $3,000,000 to University of Hawai‘i athletics for student athlete travel; $9,608,554 to the Department of Land and Natural Resources to be used to support efforts to manage, improve, and protect the State's environment and address the impact of tourism on the State's natural resources; $8,000,000 to the counties to be expended to ensure the safety of visitors to county parks and beaches; and $8,000,000 to be expended on grants, pursuant to Chapter 42F, Hawaii Revised Statutes, including but not limited to Hawaiian cultural initiatives, community programs, product development, and tourism related grants, as determined by the legislature. “The State needs to practice more fiscal restraint, pursue public private partnerships, and identify more efficiencies so it can live within its means. We still must provide needed services and invest in economic development and job creation for our community,” said Senate Ways and Means Committee Chairman Donovan M. Dela Cruz. “We also need to anticipate expenses for a growing aging population, so the Senate is being more proactive in our handling of the State Financial Plan rather than reactive. We can’t just keep kicking the can down the road.” # # # #donovandelacruz #SB2484 #SB2489 #hAWAIIsENATE

Directors and student members of the Pearl City High School “Charger” Band were honored by the Senate for their hard work and commitment to excellence as they represent Hawai‘i through music across the country. The Pearl City HS band recently was awarded the National Band Association’s Blue Ribbon Award. The band was one of only two schools selected for the award from the Western Division. The 230-member band perform under the direction of Chadwick Kamei. The band has performed at a number of prestigious events over the years including the 2011 London New Year’s Day Parade in London, England, the 2009 Hamamatsu Festival in Hamamatsu, Japan, and at the 2007 Beijing International Olympic Youth Festival and Parade in Beijing, China as a pre-Olympic celebration. Along with Director of Bands Kamei, honored on the Senate floor today was Band Director Christopher Otsuka, Pearl City HS Principal Joseph Halfmann, and student band members Xandra Morataya, Lauren Nakamine, and Kolby Odo. #hawaiisenate #pearlcityhighschool #nationalbandassociation #BlueRibbonAward #chadwickkamei #Christopherotsuka #josephhalfmann #xandramorataya #laurennakamine #kolbyodo #clarencenishihara #hamamatsufestival #preolympic

HONOLULU, Hawai‘i – Following today’s Council on Revenues’ quarterly meeting on the General Fund Revenue Forecast for fiscal years 2018 through 2024, Senator Donovan M. Dela Cruz, Chair of the Senate Committee on Ways and Means made the following statement: "The Council on Revenues raised their projection from 4.5% to 5.3%. This is good news for our short-term obligations, however, per the State's Financial Plan their projections for the out years show that the State is still overspending for Fiscal Years 2019 through 2022. This budget shortfall is being covered by the carryover balance. The practice of using the carryover balance and restrictions to balance the budget will negatively impact our State's bond rating should we go below amounts established in the State Reserve Policy. Per the 2016 State Reserve Policy, the Emergency and Budget Reserve Fund (EBRF) should be a minimum amount of 10% of the preceding year's general fund revenues combined with a carryover balance of 5% of the preceding year's general fund revenues. The EBRF is currently at $317.2 million for Fiscal Year 2018 –we need to bring it to $700 million. We are looking at budget cuts and moving bills to generate revenues shrinking the gap between revenues and expenditures. These bills will address long term budgeting needs and strengthen the State Financial Plan. The State needs its financial plan in order to pay for obligations that include unfunded liabilities, costs related to our aging population, collective bargaining, and to build the EBRF to $700 million and to maintain a carryover balance of at least $300 million. This may allow the state to move away from the practice of restricting funds to balance the budget and avoid any threat to our bond rating.” #DonovanDelaCruz #statereservepolicy #budgetreservefund #statefinancialplan #hawaiisenate #WaysandMeans

The Hawai‘i State Senate honored the winners of the 2018 Small Business Administration’s (SBA) 2018 recipients of the Small Business Awards in the Senate Chambers. These groups and individuals are recognized as making significant contributions to promote economic development in Hawai‘i. Terri Funakoshi is the Director of the Patsy T. Mink Center for Business and Leadership and is honored as the SBA 2018 Small Business Advocate for Women in Business. Terri regularly trains and mentors business owners in marketing, finance, and management, and she leads by example with her innovative projects and programs as Director. Linda Fernandez is the President and Chairman of Fernandez Entertainment. She is awarded the SBA Family-Owned Small Business of the Year. Established in 1903 by E.K. Fernandez, this family business has received international acclaim for their carnival, fair, and circus industries, while remaining true to their local, family oriented roots. Under Linda’s leadership, the business continues to grow and remains a strong promoter of local jobs and Hawai‘i state revenue. Michelle Kauhane is the President and CEO of the Council for Native Hawaiian Advancement and she was awarded the 2018 SBA Small Business Advocate for Minorities award. She is recognized for her contributions to growing, developing, and transforming Native Hawaiian Communities. Teena M. Rasmussen is the Director of the Maui County Office of Economic Development. She is the recipient of the 2018 SBA Small Business Advocate for Business and Industry as is the owner of Paradise Flower Farms, which is the largest grower, wholesaler, and internet provider of Hawai‘i’s flowers. She has also founded several key small business events such as the Made in Maui Festival and the Shop Small Business Saturday. Rounding out the list of honorees is Olivia “LIIV” Cargile, a 17-year-old singer, songwriter, producer, and multi-instrumentalist Na Hoku Hanohano nominee from Kailua. LIIV’s hit song “Bring You Back” was featured on the Fox Television prime time medical-drama series “The Resident” in January of this year. #terrifunakoshi #patsymink #patsyminkcenter #lindafernandez #ekFernandez #MichelleKauhane #CouncilforNativeHawaiianAdvancement #Minoritiesaward #TeenaMRasmussen #MauiCountyOfficeofEconomicDevelopment #OliviaCargile #BringyouBack #TheResident

Senators were getting hands-on learning – along with strength, balance and posture analysis – during Physical Therapy Day at the State Capitol. The interactive expo allowed lawmakers to test their physical abilities and ask questions and discuss policy addressing the alternatives for pain management. According to the Centers for Disease Control and Prevention, 1,000 people a day are treated in emergency rooms for misusing prescription opioids. The CDCP is urging health care providers to significantly reduce opioid prescribing in favor of safe alternatives such as physical therapy. #hawaiisenate #physicaltherapy #jkalanienglish #GilKeithAgaran #physicaltherapyday

Those who have taken initiative and risk, found success and have helped Hawai‘i’s economy were honored today on the Senate floor. The Senate recognized the 2018 Hawai‘i Venture Capital Association’s (HVCA) Entrepreneur and Deal of the Year Awardees. HVCA stands as a nexus for entrepreneurs, capital foundation, and networking opportunities. 2018 Entrepreneurs of the Year, Manaola Group LLC, was represented by Carrington Edward Manaola Yap, creator, co-founder and designer, and Zachary Pang, co-founder and CEO. With the innovation of these two founders, Manaola was founded in 2016 and rose rapidly to become a globally recognized and high demand brand with its New York Fashion Week debut last year. Manaola employs a traditional stamping method for its designs and remains true to its commitment to create culturally conscious designs. Luke Joseph is the Founder and CEO of iFirst Medical Technologies and inventor of the iFirst Analyzer and microfluidic cartridge. Joseph was named Tech Entrepreneur of the Year as he seeks to revolutionize health care through iFirst Medical Technologies. iFirst Medical Technologies brings the lab to the patient and is able to produce test results immediately all within the comfort of a patient’s home. Aaron Ackerman is the Sustainability Team Leader at the architectural/engineering firm Bowers + Kubota. Ackerman was honored as the Island Innovator of the Year for his leadership and commitment to addressing creative and sustainability goals in his design projects. Ackerman uses his multidisciplinary background to develop projects that address economic, environmental, and social issues. In one such project, Ackerman built a house made of 75% reclaimed construction waste. Tim Knapp-Ramos is the Founder of Swipewrap and was named Student Entrepreneur of the Year. Swipewrap is a software that digitizes gift wrapping with online digital gifts. Mylen Yamamoto is the Founder, Creator, and CEO of Cropsticks by Cropmade. She is the People’s Startup of the Year award recipient. Cropsticks by Cropmade is an innovative chopstick with in a built-in rest made from sustainable bamboo. Cropsticks began when Yamamoto’s chopsticks kept rolling off her tray table on a flight to Asia. She believed there was a better way to use chopsticks, and the idea was born. #2018HawaiiVentureCapitalAssociationsHVCA #hawaiiventurecapitalassociation #manaola #lukejoseph #ifirstmedicaltechnologies #timknappramos #mylenyamamoto #cropsticks #cropmade #aaronackerman #sustainabilityteamleader #bower #kubota #bowersKubota #zacharypang

The Windward Zero Waste Hui was recognized by the State Senate today for their work in food waste recovery and food security. Ka‘ohao Public Charter School, Ka‘elepulu Elementary, and Kainalu Elementary are the three Windward O‘ahu schools that make up the Hui. The students from these schools work cooperatively for waste reduction, soil restoration, and applied environmental education. In 2017, the food waste recovery from the three schools combined was 63,400 pounds, which equated to 31 tons of food waste that was recycled and turned into compost by the students. The recycled compost is then used for the school garden, with excess compost sold to the community, and the proceeds supporting the Zero Waste Hui. In recognition of their outstanding work, the Environmental Protection Agency (EPA) selected Kainalu Elementary the top award in the nationwide 2016 Food Recovery Challenge. Ka‘ohao Public Charter School also won the first place nationwide award in the 2016 Food Recovery Challenge in the category K-12 schools. The Zero Waste Hui is actively changing the mindset of the next generation to one where there is no waste, where everything can be reused, and growing your own food is fun. Representing the Windward Zero Waste Hui today was Mindy Jaffe, founder and Hui coordinator, and Heather Marsman, site leader and parent volunteer.